(MENAFN) Goldman Sachs Bank has revised its forecast for gold prices, anticipating a climb to USD2,700 per ounce by the end of the year. This adjustment represents a notable increase from its previous projection of USD2,300 per ounce. The decision to raise the forecast is grounded in the bank's research, which anticipates a further uptick in gold prices, partially driven by expectations of interest rate cuts by the Federal Reserve.

Despite a slowdown in gold exchange-traded fund (ETF) purchases during this bull cycle, the market has witnessed an upward trajectory in prices. Geopolitical tensions and concerns surrounding inflation have contributed to this trend. The recent surge in gold prices has seen the precious metal breach the USD2,400 per ounce threshold for the first time in history. This milestone coincides with escalating geopolitical tensions and mounting apprehensions about persistent inflationary pressures.

Interestingly, even in the face of positive data on inflation and a robust US jobs report, gold has continued its ascent, marking its fourth consecutive week of gains. This resilience underscores the allure of gold as a safe haven asset amidst market volatility. The sustained interest in gold underscores its appeal as an investment vehicle for wealth preservation, particularly in light of ongoing geopolitical uncertainties and broader global economic concerns. Investors are increasingly turning to gold as a means of hedging against geopolitical risks and safeguarding their portfolios in an uncertain economic landscape.

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